Sec. 101   RCW 28B.76.050 and 2004 c 275 s 3 are each amended to read as follows:
     The members of the board, except ((the chair serving on June 13, 2002, and)) the student member, shall serve for terms of four years, the terms expiring on June 30th of the fourth year of the term ((except that in the case of initial members, two shall be appointed to two-year terms, three shall be appointed to three-year terms, and three shall be appointed to four-year terms)). The student member shall hold his or her office for a term of one year ((from)) beginning on the first day of July. ((The chair serving on June 13, 2002, shall serve at the pleasure of the governor.))

Sec. 102   RCW 28B.76.090 and 2004 c 275 s 4 are each amended to read as follows:
     The board shall employ a director and may delegate agency management to the director. The director shall serve at the pleasure of the board, shall be the executive officer of the board, and shall, under the board's supervision, administer the provisions of this chapter. The executive director shall, with the approval of the board: (1) Employ necessary deputy and assistant directors and other exempt staff under chapter 41.06 RCW who shall serve at his or her pleasure on such terms and conditions as he or she determines and (2) subject to the provisions of chapter 41.06 RCW, appoint and employ such other employees as may be required for the proper discharge of the functions of the board. The executive director shall exercise such additional powers, other than rule making, as may be delegated by the board by resolution. In fulfilling the duties under this chapter, the board shall make extensive use of those state agencies with responsibility for implementing and supporting postsecondary education plans and policies including but not limited to appropriate legislative groups, the postsecondary education institutions, the office of financial management, the workforce training and education coordinating board, ((and)) the state board for community and technical colleges, and the office of the superintendent of public instruction. Outside consulting and service agencies may also be employed. The board may compensate these groups and consultants in appropriate ways.

Sec. 103   RCW 28B.76.100 and 2004 c 275 s 2 are each amended to read as follows:
     (1) The board shall establish an advisory council consisting of: A representative of the superintendent of public instruction; a representative of the state board of education appointed by the state board of education; a representative of the two-year system of the state board for community and technical colleges appointed by the state board for community and technical colleges; a representative of the workforce training and education coordinating board appointed by the workforce training and education coordinating board; one representative of the research universities appointed by the president of the University of Washington and the president of Washington State University; a representative of the regional universities and The Evergreen State College appointed through a process developed by the council of presidents; a representative of the faculty for the four-year institutions appointed by the council of faculty representatives; a representative of the proprietary schools appointed by the federation of private career schools and colleges; a representative of the independent colleges appointed by the independent colleges of Washington; and a faculty member in the community and technical college system appointed by the state board for community and technical colleges in consultation with the faculty unions.
     (2) The members of the advisory council shall each serve a two-year term ((except for the superintendent of public instruction, whose term is concurrent with his or her term of office)).
     (3) The board shall meet with the advisory council at least quarterly and shall seek advice from the council regarding the board's discharge of its statutory responsibilities.

Sec. 201   RCW 28B.76.200 and 2004 c 275 s 6 are each amended to read as follows:
     (1) The board shall develop a statewide strategic master plan for higher education that proposes a vision and identifies measurable goals and priorities for the system of higher education in Washington state for a ten-year time period. The board shall update the statewide strategic master plan every four years. The plan shall address the goals of: (a) Expanding access; (b) using methods of educational delivery that are efficient, cost-effective, and productive to deliver modern educational programs; and (c) using performance measures to gauge the effectiveness of the state's progress towards meeting its higher education goals. The plan shall encompass all sectors of higher education, including the two-year system, workforce training, the four-year institutions, and financial aid. The board shall also specify strategies for ((maintaining and)) expanding access, affordability, quality, efficiency, and accountability among the various institutions of higher education.
     (2) In developing the statewide strategic master plan for higher education, the board shall collaborate with the four-year institutions of higher education including the council of presidents, the community and technical college system, and, when appropriate, the workforce training and education coordinating board, the superintendent of public instruction, ((and)) the independent higher education institutions, the business sector, and labor. The board shall identify and utilize models of regional planning and decision making before initiating a statewide planning process. The board shall also seek input from students, faculty organizations, community and business leaders in the state, members of the legislature, and the governor.
     (3) As a foundation for the statewide strategic master plan for higher education, the board shall review role and mission statements for each of the four-year institutions of higher education and the community and technical college system. The purpose of the review is to ensure institutional roles and missions are aligned with the overall state vision and priorities for higher education.
     (4) In assessing needs of the state's higher education system, the board ((may)) should encourage partnerships, embrace innovation, and consider ((and)), analyze, and make recommendations concerning the following information:
     (a) Demographic, social, economic, and technological trends and their impact on service delivery for a twenty-year horizon;
     (b) The changing ethnic composition of the population and the special needs arising from those trends;
     (c) Business and industrial needs for a skilled workforce;
     (d) College attendance, retention, transfer, graduation, and dropout rates;
     (e) Needs and demands for basic and continuing education and opportunities for lifelong learning by individuals of all age groups; ((and))
     (f) Needs and demands for nontraditional populations including, but not limited to, adult learners; and
     (g) Needs and demands for access to higher education by placebound students and individuals in heavily populated areas underserved by public institutions.
     (5) The statewide strategic master plan for higher education shall include, but not be limited to, the following access and educational delivery items:
     (a) Recommendations based on enrollment forecasts and analysis of data about demand for higher education, and policies and actions to meet ((those needs)) the goal of expanding access;
     (b) State ((or)) and regional priorities for new or expanded degree programs or off-campus programs, including what models of service delivery may be most cost-effective;
     (c) Recommended policies or actions to improve the efficiency of student transfer and graduation or completion;
     (d) State ((or)) and regional priorities for addressing needs in high-demand fields where enrollment access is limited and employers are experiencing difficulty finding enough qualified graduates to fill job openings;
     (e) Recommended tuition and fees policies and levels; and
     (f) Priorities and recommendations including increased transparency on financial aid.
     (6) The board shall present the vision, goals, priorities, and strategies in the statewide strategic master plan for higher education in a way that provides guidance for institutions, the governor, and the legislature to make further decisions regarding institution-level plans, policies, legislation, and operating and capital funding for higher education. In the statewide strategic master plan for higher education, the board shall recommend specific actions to be taken and identify measurable performance indicators and benchmarks for gauging progress toward achieving the goals and priorities.
     (7) Every four years by December 15th, beginning December 15, ((2003)) 2007, the board shall submit an ((interim)) update of the ten-year statewide strategic master plan for higher education to the governor and the legislature. The ((interim)) updated plan shall reflect the expectations and policy directions of the legislative higher education and fiscal committees, and shall provide a timely and relevant framework for the development of future budgets and policy proposals. The legislature shall, by concurrent resolution, approve or recommend changes to the ((interim)) updated plan, following public hearings. The board shall submit the final plan, incorporating legislative changes, to the governor and the legislature by June of the year in which the legislature approves the concurrent resolution. The plan shall then become state higher education policy unless legislation is enacted to alter the policies set forth in the plan. The board shall report annually to the governor and the legislature on the progress being made by the institutions of higher education and the state to implement the strategic master plan.
     (8) Each four-year institution shall develop an institution-level ten-year strategic plan that implements the vision, goals, priorities, and strategies within the statewide strategic master plan for higher education based on the institution's role and mission. Institutional strategic plans shall ((also)) encourage partnerships, embrace innovation, and contain measurable performance indicators and benchmarks for gauging progress toward achieving the goals and priorities with attention given to the goals and strategies of increased access and program delivery methods. The board shall review the institution-level plans to ensure the plans are aligned with and implement the statewide strategic master plan for higher education and shall periodically monitor institutions' progress toward achieving the goals and priorities within their plans.
     (9) The board shall also review the comprehensive master plan prepared by the state board for community and technical colleges for the community and technical college system under RCW 28B.50.090 to ensure the plan is aligned with and implements the statewide strategic master plan for higher education.

Sec. 202   RCW 28B.76.210 and 2004 c 275 s 7 are each amended to read as follows:
     (1) The board shall collaborate with the four-year institutions including the council of presidents, the community and technical college system, and when appropriate the workforce training and education coordinating board, the superintendent of public instruction, and the independent higher educational institutions to identify budget priorities and levels of funding for higher education, including the two and four-year institutions of higher education and state financial aid programs. It is the intent of the legislature that recommendations from the board reflect not merely the sum of budget requests from multiple institutions, but prioritized funding needs for the overall system of higher education.
     (2) By December of each odd-numbered year, the board shall distribute guidelines which outline the board's fiscal priorities to the institutions and the state board for community and technical colleges. The institutions and the state board for community and technical colleges shall submit an outline of their proposed budgets((, identifying major components, to the board no later than August 1st of each even-numbered year)) to the board no later than July 1st of each even-numbered year. Pursuant to guidelines developed by the board, operating budget outlines submitted by the institutions and the state board for community and technical colleges after January 1, 2007, shall include all policy changes and enhancements that will be requested by the institutions and the state board for community and technical colleges in their respective biennial budget requests. Operating budget outlines shall include a description of each policy enhancement, the dollar amount requested, and the fund source being requested. Capital budget outlines shall include the prioritized ranking of the capital projects being requested by two-year and four-year institutions, respectively. A description of each capital project, and the amount and fund source being requested, shall be included for each capital project appearing in the prioritized ranking. The office of financial management shall reference these reporting requirements in its budget instructions.
     (3) The board shall review and evaluate the operating and capital budget requests from four-year institutions and the community and technical college system based on how the requests align with the board's budget priorities, the missions of the institutions, and the statewide strategic master plan for higher education under RCW 28B.76.200.
     (4) The board shall submit recommendations on the proposed budgets and on the board's budget priorities to the office of financial management before ((November)) October 1st of each even-numbered year, and to the legislature by January 1st of each odd-numbered year.
     (5) Institutions and the state board for community and technical colleges shall submit any supplemental budget requests and revisions to the board at the same time they are submitted to the office of financial management. The board shall submit recommendations on the proposed supplemental budget requests to the office of financial management by November 1st and to the legislature by January 1st.

NEW SECTION.  Sec. 301   Part headings used in this act are not any part of the law.

NEW SECTION.  Sec. 302   Section 102 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."